2. Given the following data:Professor Blake OPM 101 Name__________________________Spring 2010EXAMINATION 3, Version CUse a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions.The following questions are worth three (3) points each.1. What are purchased items or extracted materials that will be transformed into components or products called?a) work-in-process inventoryb) finished goods inventoryc) raw materials inventoryd) distribution inventorye) MRO inventory2. In inventory management, when discussing customer service we mean:a) whether the customer is available when the product is.b) whether the product is available regardless if the customer desires it or not.c) whether the product is available when the customer wants it.d) whether the customer wants the available product.e) whether repair of the product is available.3. If annual demand is 48,000 units, orders are placed in quantities of 2000 units at a time, and the cost to place an order is $80, what is the annual ordering cost?a) $1,920b) $3,840,000c) $160,000d) $80e) $4,1604. The ranking in ABC inventory analysis is based on what?a) annual dollar usageb) annual demand in unitsc) alphabetical orderd) unit pricee) item number5. A company’s plan is a statement of the resources available to the operations group during the next 6 to 18 months.a) aggregateb) masterc) strategicd) projecte) tactical6. What type of aggregate plan maintains a constant workforce and produces the same amount of product in each time period?a) uniformb) levelc) chased) mixede) steady1Professor Blake OPM 101 Name__________________________Spring 20107. A proactive marketing approach in aggregate planning involves ____________________________.a) varying inventory levelsb) modifying work force sizec) back ordersd) shifting the demand patterns to level demand fluctuationse) varying overtime rate8. Evaluating an aggregate plan in terms of inventory levels is using what perspective?a) costb) customer servicec) qualityd) operationse) human resources9. What does ERP stand for?a) educational resources planningb) enterprise resource planningc) enterprise reliability productiond) end routing proceduree) easy resource planning10. What information system enables companies to have the right material in the right amounts available at the right time?a) manufacturing resources planningb) multifunctional requirements planningc) material requirements planningd) material relationships planninge) manufacturing requirements planning11. The file lists the materials needed to build a product.a) master production scheduleb) bill of materialc) inventory recordsd) material needse) build structure12. The is (are) checked for the materials on hand and those that need to be procured.a) master production scheduleb) bill of materialc) inventory recordsd) material inventoriese) promised deliveries13. Which of the following techniques loads jobs up to a predetermined capacity level?a) finite loadingb) infinite loadingc) forward schedulingd) backward schedulinge) input/output control2Professor Blake OPM 101 Name__________________________Spring 201014. Which of the following techniques determines when the job must begin in order to be completed bythe due date?a) infinite loadingb) finite loadingc) forward schedulingd) backward schedulinge) input/output control15. What does makespan measure?a) WIP inventoryb) due-date performance c) the amount of time it takes to finish a batch of jobsd) job tardiness e) job lateness16. What is a unique, one-time event that is intended to achieve an objective in a given time period?a) a projectb) a jobc) a taskd) an activitye) an event17. If a delay in an activity will delay completion of the whole project, the activity _________________.a) is on the critical pathb) has slackc) is costlyd) is a dummye) is represented by a node18. An activity in a network diagram has an optimistic time estimate of five days, a most likely time estimate of seven days, and a pessimistic time estimate of 15 days. Its expected time is _______.a) 5 daysb) 7 daysc) 8 daysd) 10 dayse) 15 days19. Inventory record accuracy is especially critical for master production schedule users.a) Trueb) False20. An advantage of the chase aggregate plan is that it minimizes finished good holding costs.a) Trueb) False21. The primary objective of ERP is to integrate all departments and functions, internal and external, onto a single computer system to serve the enterprise’s needs.a) Trueb) False3Professor Blake OPM 101 Name__________________________Spring 201022. The backlog at a work center increases when the work center receives more work than it finishes.a) Trueb) False23. A local priority rule sets priority based only on the jobs waiting at that individual work center.a) Trueb) False24. In network diagramming, arrows represent precedence relationships.a) Trueb) FalseThe following problems are worth ten (10) points each.1. Suppose that your company sells a product for which the annual demand is 10,000 units. Holding costs are $1.00 per unit per year, and setup costs are $200 per order.(a) What is the economic order quantity for your product?Q = √2 DS / H = √2(10,000) (200)1 = √4,000,000 = 2,000 units(b) What is the total annual cost of ordering and holding?TC = D/Q*S + Q/2*H = 10,000/2000*200 + 2000/2*1 = 1,000 + 1,000 = $2,0002. Given the following data:Usage per Lead Time GrossItem Parent (weeks) Requirements J - 3 10 K 3 2 30 L 1 1 10 M 2 2 20 N 4 3 120 O 2 2 60 P 1 1 60 Q 6 2 360The end product J is made from components K, L, and M. K is made from N and O. O is made from P and Q.(a) What is the replenishment lead time for J, assuming there are no inventories?JL=3+1=4 JM=3+2=5 JKN=3+2+3=8 JKOP=3+2+2+1=8 JKOQ=3+2+2+2=9Replenishment time is 9 weeks (b) Calculate the gross requirements for each of the components if the company plans to build 10 ofits J model. Assume that there are no beginning inventories.See above4Professor Blake OPM 101 Name__________________________Spring 20103. Jackie is the owner and the manager of an auto repair company. In order to be fair to all the customers, Jackie decides to use the FCFS priority rule